April 2020 Newsletter

 Hi Ember Crew,

We hope everyone is healthy, happy, and sheltering in place.

📱 Company & Product Updates:

    Wyre Bug fixed -- many of you emailed us with issues with linking to Wyre. The engineering team fixed the bug late last night and everything is resolved.
    A redesign of the app is coming soon with streamlined flows and displays.
    Alex chatted with CardRates about our latest portfolios.
    COVID-19 -- we’re looking to get directly involved with charities supporting relief efforts. If you have any that are dear to you, please email us!

🔥Milestones:

    We’ve hit a huge step, approximately 1000 BTC has been deposited on our platform!
    Our Republic & AngelList Syndicate raise has come to a close with $700K. Thank you to all 1800+ of you who believed in us. We will keep building!

📊 Fund Performance

https://i.imgur.com/eSdELlm.png

    S-Tier - Bitcoin has shown an incredible upwards trajectory and is currently significantly outperforming the stock markets due to three factors at play. 1) 11 countries having seeming beaten COVID-19. 2) The upcoming large inflation of FIAT money in many countries due to printing big amounts of their currency. 3) Bitcoin Halving, the most monumental event that happens in crypto every 4 years is happening in 2 weeks again. It has led to a 20x increase in the past. This time it probably won’t be a 20x in just 1 year, but we may see large gains. ENJ has also been the winner since the Corona dump with a 400% increase. However, this can also easily be a bull trap by whales who don’t care about the COVID-19 outbreak but do care about the Halving. This can mean that they might simply pump up the price to create hype for the Halving, but then dump the price again. We will see. -Marius Kramer

    Quant - The Quant Beta fund went to cash twice during the month. Once during the middle of the month after we saw BTC downside volatility increasing, then again for a few days around April 21st, as BTC hovered between $7,200 and $6,800. Fortunately, the strategy triggered a buy signal at approximately $7,150 capturing the significant move upward to where we sit at the moment. Early results look to be about +15% for the month or about half of the return of a long-only investment in $BTC albeit with less volatility. The fund underperformed a long-only investment in Bitcoin directly during the month of April. This will almost always be the case over short volatile periods, due to the risk-managed nature of the strategy. Over the long run, however, the strategy’s mandate of avoiding significant drawdowns enables the strategy to compound at higher overall rates than a buy and hold strategy. -Eric Ervin

    Market - Bitcoin saw a significant rally in April as governments around the world responded to the Covid-19 crisis. As we write, $BTC is up approximately 8% for the year (BTC reference price $7745) while most of the major markets are still down significantly on the year. For the month of April alone, BTC is up nearly 40%. Now more than ever, asset allocators are beginning to realize the diversification benefits of digital assets and bitcoin specifically. With the oil futures collapsing and going negative, many industry pundits can’t help but wonder whether or not this will finally push to the SEC to reconsider the potential for approval of a bitcoin ETF. -Eric Ervin

As always, feel free to reply to this email with any questions or comments.

Warmly,
Ember Team